eBook

Electricity auctions : an overview of efficient practices

Barroso, Luiz A., Maurer, Luiz T. A., Chang, Jennifer M.

2011

Overview

This report assesses the potential of electricity contract auctions as a procurement option for the World Bank's client countries. It focuses on the role of auctions of electricity contracts designed to expand and retain existing generation capacity. It is not meant to be a 'how-to' manual. Rather, it highlights some major issues and options that need to be taken into account when a country considers moving towards competitive electricity procurement through the introduction of electricity auctions. Auctions have played an important role in the effort to match supply and demand. Ever since the 1990s, the use of long-term contract auctions to procure new generation capacity, notably from private sector suppliers, has garnered increased affection from investors, governments, and multilateral agencies in general, as a means to achieve a competitive and transparent procurement process while providing certainty of supply for the medium to long term. However, the liberalization of electricity markets and the move from single-buyer procurement models increased the nature of the challenge facing system planners in their efforts to ensure an adequate and secure supply of electricity in the future at the best price. While auctions as general propositions are a means to match supply with demand in a cost-effective manner, they can also be and have been used to meet a variety of goals.

• Publisher: World Bank,World Bank Publications,The World Bank
• Subject: AGGREGATE DEMAND / ARBITRAGE / AUCTION / AUCTION DESIGN / AUCTION DESIGNS / AUCTION MECHANISM / AUCTION MECHANISMS / AUCTION PRICE / AUCTION SYSTEM / AUCTIONS / AVERAGE PRICE / BANDWIDTH / BARRIERS TO ENTRY / BEST PRACTICES / BID PRICE / BIDDING / BIDDING PROCESS / BIDS / BUDGET CONSTRAINTS / BUSINESS MODEL / BUSINESS MODELS / BUSINESSES / BUYER / BUYERS / CALL OPTIONS / CAPACITY EXPANSION / CAPACITY PAYMENTS / CAPTIVE CUSTOMERS / CAPTIVE MARKET / CLIENT COUNTRIES / COMMODITY / Commodity exchanges / COMMON DENOMINATORS / COMPETITION IN ELECTRICITY / COMPETITIVE AUCTION / COMPETITIVE AUCTIONS / COMPETITIVE BID / COMPETITIVE BIDDING / COMPETITIVE PRICE / COMPETITIVE PROCUREMENT / COMPETITIVENESS / COMPLEX INSTRUMENTS / CONCESSION / CONCESSIONS / CONTINGENT LIABILITIES / CONTRACTUAL TERMS / COPYRIGHT / COPYRIGHT CLEARANCE / COPYRIGHT CLEARANCE CENTER / COST STRUCTURES / DECENTRALIZATION / DEMAND CURVE / DEMAND FUNCTION / DEMAND GROWTH / DEREGULATION / DEVELOPING COUNTRIES / DISSEMINATION OF INFORMATION / DISTRIBUTION BUSINESSES / DISTRIBUTION COMPANIES / DIVESTITURE / DUTCH AUCTION / DUTCH AUCTIONS / E-MAIL / ECONOMIES OF SCALE / ELECTRIC SECTOR / Electric utilities / ELECTRICITY / ELECTRICITY GENERATION / ELECTRICITY INDUSTRY / ELECTRICITY MARKET / ELECTRICITY SECTOR / ELECTRICITY SUPPLY / END-USER / END-USERS / ENERGY AUCTIONS / ENERGY PRICE / ENERGY PROCUREMENT / ENFORCEMENT OF CONTRACTS / EXCESS SUPPLY / EXPANSION OF GENERATION CAPACITY / EXPOSURE / FAIR / FORWARD CONTRACT / FUTURE CONTRACTS / GENERATION / GENERATION CAPACITY / GENERATION EXPANSION / GENERATORS / GOVERNMENT CONTRACTS / GOVERNMENT GUARANTEES / GOVERNMENT INVESTMENTS / GOVERNMENT POLICY / GOVERNMENT SUPPORT / GROWTH RATES / INCOME / INDEPENDENT POWER PRODUCERS / INDIVIDUAL MARKET / INDIVIDUAL MARKETS / INFORMATION DISCLOSURE / INFORMATION TECHNOLOGY / INSTALLATION / INSTITUTIONAL FRAMEWORKS / INSTRUMENT / INTERNATIONAL BANK / JURISDICTIONS / LACK OF TRANSPARENCY / LEVELS OF COMPETITION / LIBERALIZATION / LICENSES / LIMITED ACCESS / LIQUID MARKETS / LOAD CURVE / LOAD SHAPE / LOWER PRICES / MARGINAL COST / MARKET CONCENTRATION / MARKET DESIGN / MARKET FORCES / MARKET MECHANISM / MARKET MECHANISMS / MARKET PARTICIPANTS / MARKET POWER / MARKET REQUIREMENTS / MARKET VALUE / MARKETPLACE / MATERIAL / MIDDLE-INCOME COUNTRIES / MOBILE SERVICES / NEW PRODUCTS / OFFER PRICE / OPEN AUCTION / OPPORTUNITY COSTS / OUTSOURCING / PAYMENT GUARANTEES / PHYSICAL ASSETS / POLICY FORMULATION / PORTFOLIO / POTENTIAL INVESTORS / POWER CONTRACTS / POWER MARKETS / POWER PLANTS / POWER PURCHASE / POWER PURCHASE AGREEMENTS / POWER PURCHASE COSTS / POWER SECTOR / POWER SECTOR REFORM / PRICE AUCTION / PRICE BIDS / PRICE COMPETITION / PRICE DECREASES / PRICE DISCOVERY / PRICE ELASTICITY / PRICE INFORMATION / PRIVATE INFORMATION / PRIVATE SECTOR / PROCUREMENT / PROCUREMENT PROCESS / PROCUREMENT PROCESSES / PURCHASING / QUERIES / RADIO / RADIO SPECTRUM / REGIONAL POWER / REGULATOR / REGULATORS / REGULATORY FRAMEWORK / REGULATORY OVERSIGHT / REGULATORY REQUIREMENTS / RELIABILITY / RENEWABLE ENERGY / RESERVE / RESULT / RESULTS / RETAIL / REVERSE AUCTION / REVERSE AUCTIONS / RISK AVERSION / RULE OF LAW / SALE / SALES / SAVINGS / SITES / SPOT ELECTRICITY / SPREAD / STATE UTILITIES / SUBSTITUTES / SUPPLIERS / SUPPLY CHAIN / SUPPLY CONTRACTS / SUPPLY CURVE / SUPPLY FUNCTION / SUSTAINABLE DEVELOPMENT / TELECOMMUNICATIONS / TELECOMMUNICATIONS COMPANIES / TELEPHONE / TENDERS / TIME FRAMES / TRADING / TRANSACTION / TRANSACTION COSTS / TRANSMISSION / TRANSMISSION ASSETS / TRANSMISSION FACILITIES / TRANSPARENCY / TRANSPARENT PROCUREMENT / TRANSPARENT PROCUREMENT PROCESS / TRANSPARENT WAY / UNIFORM PRICE / UNIFORM PRICE AUCTION / USES / UTILITIES / UTILITY COMPANIES / VALUATIONS / VERTICAL INTEGRATION / WEB / WEB SITE / WHOLESALE MARKET / WHOLESALE MARKETS / WINNING BIDDERS
• ISBN: 9780821388228, 0821388223